How many billion-dollar export markets does Vietnam's textile and garment industry have?

With the current growth rate, it is expected that by the end of 2024, Vietnam's textile and garment industry will have 7 markets with an export turnover of billions of USD.

According to data from According to the Vietnam Textile and Apparel Association, the total export turnover of textiles and garments in the first 7 months of 2024 is estimated at 23.64 billion USD, up 4.58% over the same period in 2023. Of which, garment exports reached more than 18.4 billion USD, up 3.97%, fiber exports reached 2.54 billion USD, up 3.71%, fabric exports reached 1.47 billion USD, up 7.08%... The total import turnover of textile and garment raw materials and accessories in the first 7 months is estimated at 14.22 billion USD, up 14.85% over the same period in 2023.

It is forecasted that Vietnam's textile and garment exports and imports will continue to be positive, because according to cyclical factors, demand for goods often increases sharply in the last months of the year. Vietnam's main export markets such as the US, Japan, South Korea, and China all increased, while Europe had the lowest growth rate, only 0.8%.

Producing garments for export at Veston Hung Ha Enterprise (May 10 Corporation - JSC). Photo: Ha Thu

Commenting on the export markets of Vietnam's textile and garment industry, Mr. Le Tien Truong - Chairman of the Board of Directors Vietnam Textile and Garment Group - said that in the first half of 2024, the industry's 5 main export markets all recorded growth compared to the same period: The US market reached 7.4 billion USD (up 3.1%), Europe reached 2 billion USD (up 0.8%), Japan reached 1.97 billion USD (up 4.9%), Korea reached 1.65 billion USD (up 2.6%), China reached 1.68 billion USD (up 4.6%).

In addition, there is a new market that has reached an export turnover of 1.5 billion USD after 6 months, which is ASEAN. By the end of this year, it is likely that the Canadian market will also reach 1 billion USD, because after 6 months it has reached 580 million USD. " By the end of the year, it is likely that Vietnam will have 7 export markets with a turnover of over 1 billion USD, of which the US market is still striving to reach 15 - 16 billion USD this year ," said Mr. Le Tien Truong.

Also according to the representative of Vietnam Textile and Garment Group, by July 2024, with a fairly positive order situation, Vietnam is the only country out of the four countries textile export The world's largest textile and garment market share has increased in many countries. In particular, the US increased from 17.6% to 18.3%, equal to China; Bangladesh decreased by nearly 1%, to only 9.8% market share; India remained the same with 7% market share. Although the European market's textile and garment imports decreased by about 5.5%, Vietnam's textile and garment exports still maintained their market share in this bloc with about 4.4%.

“ So far, orders in August are also positive, expected to be better than July. September is the transition month, so it may decrease a little. In October, November, and December, orders are expected to be relatively abundant, but it depends a lot on macroeconomic fluctuations in each country, ” said Mr. Le Tien Truong.

Another important point that could boost Vietnam's textile and garment export growth in the remaining months of the year is that major fashion brands have very positive inventory reductions in the second quarter of 2024; in particular, Nike's inventory decreased by 11% and Levi's by 7%. The business results and profits of fashion brands have improved at a fairly sustainable level.

The two fashion brands with the most outstanding profit growth are H&M with about 49%, Uniqlo about 36%. The increase in profits of fashion brands also hopes to improve the order prices of manufacturers, including Vietnamese manufacturers. In fact, in the past 7 months, although orders are abundant and production is better organized, the price of each order has not improved, and some product codes are even lower than in 2023.

On the basis of sufficient goods, most textile and garment enterprises have more positive results than in 2023. From a management perspective, having orders is considered a necessary condition for enterprises to maintain operations, retain customers, market share, markets and labor, and welcome opportunities for development again.

With the third largest export scale in the world, employing more than 2 million workers, and monthly export turnover reaching from 3.5 to 4 billion USD, it is clear that the impacts of the world market and economy on the Vietnamese textile and garment export industry are very large. In the context of an unpredictable and rapidly fluctuating market, staying alert, not being subjective and having a strategy to respond to each situation are also notes given by experts to domestic textile and garment enterprises to avoid risks.

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